In a significant move, the Karnataka government on Tuesday tabled a Bill in the Legislative Assembly to introduce a 4 per cent reservation for Muslims in public contracts. The proposed legislation, titled the Karnataka Transparency in Public Procurements (Amendment) Bill, 2025, was presented by Law and Parliamentary Affairs Minister H K Patil.
The Bill seeks to amend the Karnataka Transparency in Public Procurements (KTPP) Act, 1999, which will reserve 4 per cent of government contracts for Muslims in civil works valued up to Rs 2 crore and goods/services contracts up to Rs 1 crore. This proposal was initially announced by Chief Minister Siddaramaiah in the 2025-26 Budget, which was presented on March 7.
Currently, Karnataka provides reservations in civil works contracts for Scheduled Castes (SC) and Scheduled Tribes (ST) at 24 per cent, Other Backward Classes (OBC)–Category 1 at 4 per cent, and OBC–Category 2A at 15 per cent. The new proposal aims to include Muslims under Category 2B of the OBCs with a 4 per cent reservation, addressing the long-standing demands to improve their representation in government contracts.
The Bill aims to promote the participation of backward classes, including Muslims, in government construction projects and public procurement processes. Specifically, it proposes that up to 4 per cent of contracts in civil works and up to 4 per cent of goods and services contracts be reserved for Muslims in Category 2B. The government also hopes to reduce unemployment among these communities through this initiative.
The proposal has sparked controversy, with the Bharatiya Janata Party (BJP) calling the move an "unconstitutional misadventure." BJP leaders have vowed to oppose the Bill at all levels, including challenging it in court if necessary, until the reservation is revoked. The party’s criticism highlights the growing debate over reservations in government contracts and its implications.
The Bill further emphasizes that the proposed measure would not result in any additional expenditure. The legislative change is designed to align with the 2025-26 budget proposals and aims to enhance the participation of SC, ST, and OBC communities in public procurement, ensuring more inclusive opportunities in government contracts.
(PTI inputs)